Hortonworks Reports Second Quarter 2018 Revenue of $86.3 Million

SANTA CLARA, Calif., Aug. 8, 2018 — Hortonworks, Inc., a leading provider of global data management solutions, has announced financial results for the second quarter of 2018.

“Our entire team executed extremely well in the second quarter to deliver another fantastic result, with total revenue growth of 40 percent year over year,” said Rob Bearden, chief executive officer of Hortonworks. “We attribute our continued growth to the rapid adoption of our open source global data management platforms, which help customers manage the entire lifecycle of their data from point of origin to point of rest and across hybrid and multi cloud architectures, all with common security and data governance.”

Second Quarter 2018 Financial Highlights

Revenue: Total GAAP revenue was $86.3 million for the second quarter of 2018, an increase of 40 percent compared to the second quarter of 2017.

Gross Profit: Total GAAP gross profit was $62.4 million for the second quarter of 2018, compared to $41.4 million for the same period last year. Non-GAAP gross profit was $65.4 million for the second quarter of 2018, compared to $43.4 million for the same period last year. GAAP gross margin was 72 percent for the second quarter of 2018, compared to 67 percent for the same period last year. Non-GAAP gross margin was 76 percent for the second quarter of 2018, compared to 70 percent for the same period last year.

Operating Loss: GAAP operating loss was $42.0 million for the second quarter of 2018, compared to $54.5 millionfor the same period last year. Non-GAAP operating loss was $10.4 million for the second quarter of 2018, compared to $27.0 million for the same period last year. GAAP operating margin was negative 49 percent for the second quarter of 2018, compared to negative 88 percent for the same period last year. Non-GAAP operating margin was negative 12 percent for the second quarter of 2018, compared to negative 44 percent for the same period last year.

Net Loss: GAAP net loss was $41.2 million for the second quarter of 2018, or $0.52 per basic and diluted share, compared to a GAAP net loss of $56.1 million, or $0.87 per basic and diluted share, in the second quarter of 2017. Non-GAAP net loss was $9.5 million for the second quarter of 2018, or $0.12 per basic and diluted share, compared to a non-GAAP net loss of $28.6 million, or $0.44 per basic and diluted share, for the same period last year.

Contract Liabilities: Total contract liabilities, which is comprised of short-term deferred revenue, other contract liabilities and long-term deferred revenue, were $259.1 million as of June 30, 2018, compared to $249.5 million as of March 31, 2018, $252.5 million as of January 1, 2018 and $275.2 million as of December 31, 2017. The balance as of January 1, 2018 reflects a reduction to contract liabilities of $22.7 million from December 31, 2017 as a result of our adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606).

Cash & Investments: Cash and investments totaled $86.0 million as of June 30, 2018, compared to $72.5 million as of December 31, 2017 and $71.8 million as of June 30, 2017.

Operating Cash: Operating cash flow used was $2.0 million for the second quarter of 2018, compared to operating cash flow used of $11.7 million for the same period last year.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release.